SMEs Devt: Federal Government Reiterates Commitment to Building a $1trn Economy

By Praise Chinecherem

Federal GovernmentFederal Government Working Hard to End Insecurity-NSA on Thursday assured its commitment to building a $1 trillion economy through enterprise, productivity, and innovation.

Senior Special Assistant to President Bola Tinubu on Entrepreneurship Development (Communications, Innovation and Digital Economy), Chalya Shagaya disclosed this in Awka, Anambra state at a two-day Conference/Workshop organized by the UNIZIK Centre for Capital Market Studies.

The conference themed, “Harnessing Capital Market Opportunities for SME Growth and Investment Sustainability” was in collaboration with the Securities and Exchange Commission.

Describing Micro, Small and Medium Enterprises (MSMEs) as not just an afterthought but at center of national growth, Shagaya pledged government’s continued willingness to eliminate barriers to business.

She said, “Under the leadership of President Bola Ahmed Tinubu, the Federal Government is fully focused on building a 1 trillion-dollar economy, not by magic, but by enterprise, productivity, and innovation.

“Through the Renewed Hope Agenda, MSMEs are not just an afterthought; they are at the center of national growth.

“The President understands that when our small businesses thrive, Nigeria thrives. The plan is simple: help entrepreneurs access finance, create enabling environments, and give you the digital and physical infrastructure to scale.

“Under Tinubu’s leadership, we are laying a foundation for a Nigeria where every small business has a fair shot, where good ideas do not die and where entrepreneurship becomes not just survival, but success.”

According to the SSA, a lot is already happening under the recent Policy and Institutional Actions, including Access to Finance, Ease of Doing Business, Digital Enablement, as well as Franchising for Scale.

Quoting the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Shagaya disclosed that Nigeria had over 38 million small and medium enterprises in 2021.

She added that nearly 5 million of staggering 38 million MSMEs are domiciled in the South East, with about 30 percent in Anambra alone.

Her words, “MSMEs currently account for 86 per cent of employment and 48 per cent of Gross Domestic Product (GDP).

“So, when we talk about innovation, productivity, and national growth, let us be honest, it is happening right here. The markets of Onitsha and Nnewi have built more entrepreneurs than most MBA programs could dream of.

“We are strengthening the partnerships between the Securities and Exchange Commission (SEC), the Nigerian Exchange Group (NGX), and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to ensure SMEs can raise long-term capital through the NGX Growth Board, and private equity.

“We want to make the capital market work for the small business owner too, not just the big corporates.

“Working with PEBEC, CAC, and FIRS, we are making registration simpler, cutting costs, and helping informal businesses come into the formal fold without losing their sanity in the process.

“My office is collaborating with NITDA, NASENI, and the Federal Ministry of Communications, Innovation and Digital Economy to push digital adoption. From e-commerce to innovation hubs, we want our SMEs to compete not just locally, but globally.

“We are developing a National Franchising Policy. We want Nigerian brands that can expand across Africa and list confidently on the NGX.

“Through its Growth Board, the Nigerian Exchange (NGX) currently offers a structured pathway for SMEs to access capital market opportunities.

“The Growth Board provides opportunities for small businesses to leverage the capital market to raise long-term capital.

“Beyond capital, the Growth Board, also offers full complement of Value-Added Services such as Corporate Access, and Corporate Governance, reduced NGX fee structure, relaxed entry criteria, reduced post-listing obligations and increased turnaround time for approvals and time to market.

“We encourage MSMEs to approach the NGX to explore a range of these opportunities. This is also in addition to the opportunities that are equally on offer by the Bank of Industry (BOI).

“The capital market is not just for billionaires; it is a bridge. It connects small business owners with investors, long-term funding, and growth opportunities.

“We are also integrating sustainability principles so businesses can grow responsibly. Profit is great, but we are after something deeper: profit with purpose.

Charting the path forward, Shagaya underscored the need to move from policy papers to practical power plays as necessary for harnessing capital market opportunities for SME growth.

“To our investors: look beyond the blue chips. The next big entrepreneur building a future industrial enterprise may already be in your backyard, operating from a small factory or a laptop in Nnewi, Aba, or Onitsha. Do not wait till they hit Forbes before you notice them.

“To our entrepreneurs: keep doing what you do best, innovate, persevere, and disrupt. You are the heartbeat of this economy. And trust me, the Federal Government sees you, hears you, and is working daily to make sure you thrive.

“Let us harness the power of our capital markets, our creativity, and our collective will to build a Nigeria that works for everyone.”

Acting VC, Prof Carol Arinze-Umobi commended the SMEs for their key roles in socio economic development, including job creation, innovations, business competition as well as contributions to gross domestic product as backbone of nation’s economy.

She however decried the challenge of funding which she said had hampered full realization of their potential contribution to socioeconomic development.

“In this regard, the capital market comes in as a connect between investors with excess funds, and companies, and government needing such cash for long term investment,” she noted.

Earlier, Director, UNIZIK Centre for Capital Market Studies (UCCMS), Prof Chinedu Onyeizugbe identified access to sustainable finance as key challenge for small and medium–sized enterprises.

“The conference seeks to address the gap by exploring how the capital market can become a catalyst for SME expansion, business innovation and long- term economic sustainability,” he added.